By Rod Nickel and Laura Sanicola
WINNIPEG, Manitoba/NEW YORK (Reuters) – U.S. oil refineries are moving aggressively to produce renewable diesel, partly to cash in on Canada’s greener fuel standard before Canadian refiners modify their own plants.
Canadian Prime Minister Justin Trudeau’s government intends to present its Clean Fuel Standard this year, aiming to cut 30 million tonnes of emissions by 2030.
Renewable diesel, made by processing spent cooking oil, canola oil or animal fats, can be used in high concentrations or without blending in conventional diesel engines.
So far, Canadian companies have been slow in preparing to make the fuel, with only three projects publicly announced, said Ian Thomson, president of the Advanced Biofuels Canada industry group.
At least five U.S. refiners have announced plans to produce renewable diesel or said they are considering it, including Phillips 66
“This is Canada’s to lose,” Thomson said.